Business

Candy Crush games developer King aims to raise $533m

Candy Crush Saga Image copyright AFP
Image caption Candy Crush Saga is King's most popular game and the biggest contributor to its revenue

King, the games developer behind Candy Crush Saga, is looking to raise as much as $533m (£321m) via a share sale on the New York Stock Exchange.

The firm said it is planning to sell 22.2 million shares, priced between $21 and $24 per share.

That could value the company at almost $7.6bn at the top of its pricing range.

King's portfolio includes more than 180 games, but Candy Crush is its most popular offering and was the most downloaded free mobile app of 2013.

It has been downloaded more than 500 million times since its launch in 2012.

Over-reliance?

The popularity of Candy Crush has been the biggest driver of growth for King during the past two years.

Before Candy Crush, in 2011, King took $64m in revenue.

Two years later, and after the Candy Crush mania had well and truly taken hold, it had sales of more than $1.8bn

However, there have been concerns that the firm relies too heavily on Candy Crush and that if its popularity faded, the company's revenue and profits may be hit.

King has acknowledged this in its filing with the US securities regulator.

"A small number of games currently generate a substantial majority of our revenue," it said.

According to the firm, its top three games - Candy Crush Saga, Pet Rescue Saga and Farm Heroes Saga - accounted for 95% of its total revenue in the fourth quarter of 2013.

King said that if these games become less popular, and it is unable to offset that with sales from other games, it will not be able to maintain or grow its revenue and "our financial results could be adversely affected".

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